AVINOC Ico Review: Aviation Network Operation Chain

About AVINOC

AVINOC as a Blockchain solution provides a transparent, integrated, permissionless and decentralized base data layer for the exchange of relevant information for the GA. The main focus here is on BizAv. The aim of AVINOC is flight coordination, order management and infrastructural issues of the GA worldwide and, with the help of the integrated transaction and payment system, achievement of an optimal use of resources and a high level of cost reduction on the market. The primary goal is to strengthen the BizAv market with a focus on reducing the time span of the information and payment flow to zero, thus creating an optimal supply chain. This will allow the entire global market to be strengthened and made sustainable for the future. It will furthermore result in positive effects on all other economic sectors of a country with well-defined BizAv. It will also enable future technologies, such as autonomous or semi-autonomous flying, to be effectively and efficiently deployed in organizations.

THE PROJECT

General Aviation

General Aviation (GA) covers the worldwide civil transportation of persons and cargo with airplanes or helicopters outside of the scope of regular charter and airline business. It can further be divided into the Business Aviation branch (BA, corporate and executive aviation business) as well as the Private Aviation branch (private flying and clubs).

Aviation Management

Managing all the traffic in GA requires intermediaries (like brokers or platforms) functioning as a kind of communication interface between customers and operators. Such systems tend to be highly complex, laborious, time-consuming, and finally expensive. Direct bookings and communication between customers and operators are basically impossible.

Blockchain

Every user involved in AVINOC possesses a local copy of all relevant data. This creates new opportunities for global, direct, permissionless, and fast communication between participants involved in the complex aviation business. AVINOC makes all necessary information of availability of staff and equipment visible in a decentralized manner. Efforts for communication and coordination can be reduced to a minimum or, in most cases, they can be totally eliminated.

Intermediaries

Manual order processing and information retrieval via e-mail, telephone or fax must be a thing of the past. Direct bookings and empowerment of the customer through the availability of all data is our goal.

Empty flights

Aircraft operators struggle with low utilization and high costs due to lack of available data. Optimum utilization, low costs, and satisfied customers can only be achieved with a consistent, freely available, and integrated database.

Unused capacities

Often only one seat is occupied, but the customer has to pay for the entire flight – i.e. all seats. Jet Sharing can find in any situation, very easy, and fast worldwide sympathetic fellow travelers. This will split the cost of the flight among all passengers and reduce costs for each sign.

Airlines

Since the 1960’s, the organization of air travel with airlines has been steered by the same technology, even to this day. This system is generally known as the Global Distribution System (GDS). In this system, transactions are made between the airlines and travel agencies that offer passengers air travel. This market is dominated by three players worldwide. Other than the GDS, a huge amount of price comparison and booking portals have sprung to existence, which separates airlines from customers and therefore, creating non-transparency. Technical innovation is urgently needed to break this artificial overpriced system and to strengthen the airline market from the inside again.

Booking Portals

Booking portals are intermediaries between travelers and airlines. They raise, unbeknownst to us, the complexity, non-transparency, and prices of flight tickets for customers. Fees for paying with a credit card, unwanted additional insurances, high cancellation prices, high fees for any changes, extra fees for seat reservation or luggage, non-transparent booking classes, missing booking confirmations, and complicated search masks are the largest cause for customer dissatisfaction. Additionally, programs (bots) manipulate the prices and book automatically, to change the workload for the benefit of these portals.

GDS & Travel Agencies

Between airlines and their customers is, on one hand, the GDS and on the other hand the travel agencies. The airlines pay booking fees to the GDS and commissions to the travel agencies. Travel agencies are then compelled by the GDS, to also use the system. The traveler, in the end, has also paid a service fee to these agencies. Airlines cannot opt out of the GDS, because there are no practical economical alternatives. In the end, airlines have had a decrease in margins, although there is an increase in travelers and for travelers, there is still an increase in ticket prices.

AVINOC for Airlines

AVINOC can solve this problem and its complexity through its permissionless base data layer. AVINOC enables airlines to take back the direct contact to the customer starting from the marketing, as well as the direct price comparison and lastly direct bookings. At the same time, a high transparency for offers and prices, in line with the market-conform, is made for all market participants. Intermediaries, in the form of booking and price comparison platforms, will not be needed anymore.

Fractional Ownership

This operator model is characterized by the acquisition of a business aircraft by several investors. In this case, the investment costs are proportionately paid by one-off payments and thus part ownership is obtained. In addition to the acquisition costs, there are monthly fixed costs for the operator as well as variable costs for the actual air traffic.

Jet Membership / Jet Card

With this operator model, a customer buys a defined quota of flight hours within a specified period of time. Only the costs for the flight hours purchased are paid. If not consumed, the unused hours expire.

Threat of new competitors

The threat of new competitors, however, is seen as rather low because of the high market entrance barriers in the industry. This is in particular due to the high capital requirement and the associated high risk. In addition, the staff is confronted with high entry barriers, because, regardless of rather easily obtainable and reasonably priced pilot licenses, the ratings4 for the respective aircraft types are quite expensive compared to the license. For each aircraft type, the corresponding rating must be renewed at periodic intervals.

Broker

Brokers do not operate their own aircraft. A broker acts purely as an intermediary between the potential customer and the operator and without responsibility concerning the aviation aspect. He selects the fitting aircraft from the operator for the customer, based on the latter´s requirements,r. For this action, a mediation commission has to be paid. The flight itself is settled with the operator, whereby it is not uncommon to buy quotas if they are offered. In principle, no specific business license is required to practice as a broker in BizAv.

Team

Member

Robert Galovic – PARTNER | PRODUCT DEVELOPMENT & RE

Karl-Heinz Mali – PARTNER | AVIATION, MIDDLE EAST & INDIA

Rene Inkret – PARTNER | AVIATION LOGISTICS & PLANNING

Gernot Winter – PARTNER | FINANCE, INVESTMENTS & LEGAL

Quote This article is writing on 22 June 2018 based on information available online & news portal. If you feel it’s outdated or incorrect, please write here to update it. Mail us: support@coinworldstory.com Or Whatsapp Us- +13098896258

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